Ethical Situations in Business
The chief goal of any successful business is to increase shareholder wealth. As a result, the vast majority of business decisions are driven by the basic objective of increasing net profit. These types of decisions are supported by financial data, and are often pretty straightforward propositions. For instance, if a company can gain efficiency via a more automated workflow, it may be able to reduce labor by 10%, thus decreasing operational expense and increasing profit. While these types of decisions are relatively easy for business leaders to agree upon, there are decisions to be made in regard to a company’s social responsibility that are much more ambiguous. In fact, at first blush, it would seem that shareholder equity and social responsibility are diametrically opposed concepts. However, many businesses are finding that these objectives can complement one another if strategy and policies are carefully considered and thoughtfully implemented. This type of careful consideration is contingent on an organization’s emphasis and commitment to identifying and executing policies of social responsibility. The successful identification of opportunity and execution of policy change require the entire organization to understand the importance and benefits of becoming a more socially responsible entity. This alignment of individual, corporate, and community values is the key to meaningful change. As a result, the focus of this essay will be on the ways that Company Q can change its company culture to encourage the identification and implementation of socially responsible policies that will also yield positive financial outcomes.
In the scenario outlined for this task, Company Q has taken an approach that illustrates a belief that social responsibility and profits cannot be aligned in a way that maximizes both the bottom line and positive impact on the community. The grocery store chain could have taken action to improve financial...